I have an ASP.NET 3.5 web application in which i am using the ToolkitScriptManager as below:

<ajaxToolkit:ToolkitScriptManager ID="ToolkitScriptManager1" EnablePageMethods="true" ScriptMode="Release"
    LoadScriptsBeforeUI="false" runat="server" CombineScripts="false">
 <CompositeScript>
<Scripts>
<asp:ScriptReference Path="~/JavaScript/jquery-1.4.1.min.js" />
<asp:ScriptReference Path="~/JavaScript/Validators.js" />
</Scripts>
 </CompositeScript>
</ajaxToolkit:ToolkitScriptManager>

This works fine but from a performance standpoint this is not good as the pages are making a lot of requests to the webresources.axd and scriptresource.axd files. When I changed the CombineScripts property to true my ASP.NET AJAX control extenders are no longer working. What is the reason for this weired behavior and is there a fix for this?